Korean Digital Currency Bill to Launch Shortly but Government Has Concerns

The bill to provide a legal framework for digital currencies including bitcoin in South Korea is set to be introduced this month. However, the government still has a number of concerns and needs more in-depth research, as outlined at a parliamentary hearing on Monday.

Bill Prepared to Launch This Month

At the end of this month, an amendment bill for the Electronic Financial Transaction Act will be introduced by Rep. Park Yong-jin, a member of the Democratic Party, according to local publications on Tuesday. News of him preparing this bill which will address digital currency was first reported earlier this month.

On Tuesday July 18, Park held a legislative hearing to discuss digital currency at the National Assembly Library in Seoul. Public opinions were gathered which he plans to incorporate into the bill he is drafting, News1 Korea reported, and quoted him saying (loosely translated):

"Korea still has no legal basis or definition for virtual currency, so it cannot support and nurture it. Without timely financial authorities’ measures, damage to virtual currencies will increase and opportunities for its upbringing will be missed."

“While you can see virtual money as a new type of money, you need to look at it as a speculation or an investment,” commented Han Kyung-soo, a lawyer who attended the hearing. “You need a minimum amount of protection,” he added, referring to regulations for consumer protection.